Thread: Could this happen to you?

Because it doesn't look like many people go to the legal forum, I'm posting this here.

My home was foreclosed by a mortgage lender who doesn't hold the mortgage.

If I hadn't filed Chapter 13 the day before the courthouse steps sale, I wouldn't be in my home right now.

And if I hadn't decided to list, my friend a Realtor would not have gotten the title binder which shows that the mortgage lender who foreclosed does not hold the mortgage.

I think this situation reflects corruption.

I don't know what to do, either. (Though I feel better since I did the web page and began writing about this on forums.)

http://www.health-boundaries-bite.com/Fraud.html

Hi Karen

That sounds like madness and it must be incredibly frustrating trying to work through all the issues.

I'm not familiar with how the USA mortgage scene works apart from that scene in "indecent proposal" where the rich guy buys the other guys mortgage (#### that, I decide who I get finance through).

Yes, talk to your lawyer! Can you see what their motivation is? Is there something special about your property that they are trying to secure it for - next to a proposed development etc in which case I'd be claiming malicious intent. Have you just broken up with the CEO of the mortgage company and s/he isn't happy about it, or the brother of the CEO of the mortgage company? You need to find out what their motivation is. There will be one! Or is it possible that some drongo office clerk has typed the wrong address and it's an honest mistake?

Good Luck!

Sarah

Hi Sarah,
Yes, I think you've rather got a bead on it.

The thing is that I have a loan with a rather aggressive lender. They charged me more than the good faith estimate, etc. And they have you sign that they barely need to do any kind of court foreclosure.

But this is a far more main stream lender.

Where you cotton on to the underlying problem, I think, is when you ask why...

Back when I was still living in the hydrogen sufide, I had a problem with my bank account at Wells Fargo, I can't quite remember how it worked, but it was something like I'd done a stop payment, and they paid it anyway, then when I complained they sent back two payments, which of course I did not want because being two months behind triggers (or just about triggers) foreclosure.

So, one of the things that often goes, when brain cells and brain function go, is the ability to switch to being diplomatic when you are feeling angry.

So.... I got the address of the head guy of Wells Fargo and wrote him saying that unless he set it right I was going to sue him and have him served in his office.

That's why I think this happened. Wells Fargo knew I had a complaint about them, which could have translated into a counterclaim, so they got the former lender to do it: GE Mortgage.

What I don't know how to do, is address this, though.

I've had major bad luck with lawyers.

I had though one was going to take the personal injury part of my privy pit thing, but then I spoke with that lawyer's friend (lawyer) about my foreclosures and bankruptcy and I didn't take care with how the interview was structured... so I didn't stay thoughtfully on topic, and I'm feeling certain he told his friend and thereby weirded out the possibilit of the first lawyer taking the personal injury case.

Whew.

Thank you for helping me think about this.

You really want to keep this property right?

Yes

• get an independant lawyer,
• get documentation,
• start a diary of everything that's happened.
• be totally upfront with the hissyfit you had, provide documentation. It might not be pretty but you can't hide it so don't try
• use the media if you have to

No

• Can you sell it before they foreclose? thereby ensuring you get the best possible price, pay them off and hold onto your capital
• Can you refinance and pay off the original loan meaning there is nothing to recall?

Keep your head. Lawyers are expensive but having your hand forced here might cost you more!

Sarah

Boy, you think like I did before I had brain damage.

(If you have lines on your fingernails or are losing your moons, get the methylcobalamin, because that's what began undoing me... it happens quite slowly. I'm 60.)

I have two other properties, and my plan is to sell them if I have to, which I think I may have to.

The problem I've had with lawyers is that they just ... let me down ... but, I have so little cognitive function some of the time.

I do think that this input from you will help me communicate with the lawyers, tomorrow.

I am grateful to you.

Thank you.

This is quite common. Most mortgage companies sell their notes off daily. I am only guessing but I would say that the note holder you thought you had, filed foreclosure and bundled your loan in with others and sold it off to another company. By the time you got the note holder info to file Ch 13 you saw it was a different company. I had one of my mortgages a few years ago sold twice before I was even done signing the closing papers.

As for them quoting you in your good faith a set of figures and then those changing at the closing table, that happens quite often as well and they are not breaking the law....Yet. You should have got up and walked away from the closing and used another lender.

I do believe that you got the bad end of the deal but in my humble opinion I do not believe you have any recourse against this mortgage company or wells fargo. No attorney is going to take this on for cheap or contingent bases in my opinion, I personaly do not see any real damages you could get in a law suit from just what you have posted here...sorry...but this is maybe why you are having trouble getting an attorney to take on your case.

I don't think damages are the issue here as much as securing her property and preventing the foreclosure.

On a side issue how is it that someone can shop around, find the lending institution they want to deal with and then be shunted off without notice?
You guys accept that level of customer service?
Doesn't the amount of legal paperwork make it unviable?

Elsewhere on the web I have found websites for mortgage providers etc all vying for business and trying to run the web side of it well. Why bother looking good when there must be a huge level of mistrust associated with the industry.

We hear about the low interest rates and the long fixed rate periods enjoyed by US Investors but somehow I think I'd rather have certainty and credibility. The market down here is intensely competitive and I don't think a lender would get away with treating investors or homeowners so shabbily.

Dear Las Vegas, as a matter of fact the sheet they give you with specfic charges is binding. It was a two part deal, and the one half refunded me the difference.

You are missing the point in the foreclosure by a mortgage lender who didn't hold the mortgage.

What I am talking about is that just as I cannot divorce you, because I'm not married to you, so to the lender who doesn't hold the mortgage can't forclose it.

Do you see how that works?

The damages part of it is that the lawyer lied.

Hi Las Vegas,
The damages are related to how the lawyer lied. Lawyers are officers of the court. They are supposed to tell the truth. When she wrote the complaint, she knew that what she was doing was not true, yet she did it anyway.

I only just got the title binder yesterday, so I haven't tried to get a lawyer about this at all.

I couldn't get a lawyer years ago when IRS took all my money.
I couldn't get a lawyer before that when I wasn't paid my commissions for selling advertising, because the lawyers said that $10,000 wasn't worth it for them. But for me, that year, that was half of what would have been my income.

When I first had the privy pit problem,lawyer after lawyer told me that they'd take my case if I'd slipped in a store, or if it were a car accident... but that this was not such an easy kind of case.

Now, since there was the telly coverage, there is a lawyer looking at it.

You know what's sort of funny? My horoscope today was that lots of people were going to misunderstand me.

lol

Dear Las Vegas, as a matter of fact the sheet they give you with specfic charges is binding.

If it was a good faith sheet showing you the cost and charges along with the interest rate...at this very moment that is not binding, it even states on the sheet " This is An Estimate ". I own a mortgage banking company and I can assure you 100% it is Not binding. It is however sad and as I mentioned quite common to do this which is called bait and switch.

HUD at this moment is trying to get laws passed that when I mortgage company gives you a good faith that they must stick to the fee's and cost they have quoted, but at this time that is not the case.

You are missing the point in the foreclosure by a mortgage lender who didn't hold the mortgage.

If I understood you, you were saying that when they filed for foreclosure on you and you filed ch 13 you found out this mortgage company did not hold the note to your home? is this correct?

If so then as I mentioned mortgage companies can start a foreclosure and sell your note off to another mortgage company and the company that buys it follows through with the foreclosure. This is quite common.

What I am talking about is that just as I cannot divorce you, because I'm not married to you, so to the lender who doesn't hold the mortgage can't forclose it.

Mortgage companies can hire other companies to foreclose on you, also several of these mortgages companies have a lot of DBA's that they do business under.

Did you know that one company can service your mortgage while another holds the note? As I said I do believe you got the raw end of the deal and I do feel very bad for you. I really wish you could take this mortgage company to the cleaners but I dont believe you can with what you have explained here.

The damages part of it is that the lawyer lied

If the lawyer lied to you then that is a case of malpractice and the attorney should be sued. However you will find it very difficult to find an attorney that will take on another case against a fellow attorney. The one that will is going to charge you and arm and a leg to handle the case.

My first suggestion would be if the attorney lied to you file a complaint with his/hers state bar.